How To Buy A Business With No Money- One way to be financially free is to be your own boss. Have your own business, determine your own income and manage your time . However, you can still be a business owner without having to start one . You can simply buy up an existing business . There goes the hook! Buying a whole business can be a capital project! Where do I get such funds! No worries at all! In this article, you will learn how to buy a business with no money.
Steps To Buying A Business With No Money
Step 1: Find the right business
Don’t just buy a business because such is up for sales. Buy because such is ideal for you and it is a kind you will be able to handle and maintain. You should be able to answer the following:
- Is this business right for me?
- Will I be able to handle/ maintain this kind of business?
- Do I have the right kind of strategy to continually maintain such kind of business?
Step 2: Find a business owner who is willing and ready to sell out his/her business
Look for business owners in your locality. Check out the ones that looks like the ones that can be bought. For instance, if such a business owner is old, wants to start other businesses or is undergoing some financial crisis. Retiring owners are the best targets when searching for businesses to take over. The reasons are so obvious.
Search for business owners of the businesses themselves and talk to them . Even if they are not selling , they could refer you to someone that may want to.
How To Locate A Business Owner
i. Business Entity Search
You can search for the owner of a business using the business name and entity name
ii. Check through the company website
You can check the “about page” of a company website to get the details of the owner of a business
iii. Check through social media
Most businesses now have accounts with popular social media like Facebook, Instagram, LinkedIn, Twitter. You can check up a particular business on social media to get the contact details of the owner.
iv. Check the Better Business Bureau
Most businesses are listed on BBB. So you can check through to get the contact details of the owner.
Step 3: Look for opportune moment
You must know when to step in to approach a business owner at the right time will make a whole lot of difference in your getting a good deal.
Examples of Opportune moment
- When owner is about retiring
- During an economic recession
- When the owner is undergoing some financial crisis
Step 4: Get a lawyer
In buying a business without money, you will require the services of a sound and experienced business lawyer. This is to ensure that your deal follows a proper structure. Don’t just get any kind of lawyer , ensure it is one that specializes in business.
Step 5: Search for a business that offers seller-financing
There are some business owners that are willing to offer a loan to prospective buyers of their business. This is a very good one. Sometimes, the deal may still require you make some down payment as the owner may not give you all the loan. You may have to seek for funds externally to do that. You may have to seek for funds externally.
A business owner offering self-financing could mean:
- The owner believes you will be able to manage the business well
- The owner believes in his business
- It can also imply that the business has a limited market and as such there are limited buyers and the businesses could be at the risk of liquidating soon.
Step 6: Search for an owner who don’t mind becoming a passive investor
There are some business owners that are approaching age of retirement , but such don’t want to totally let go of their business. You can give such owners the option of becoming a passive investor while you do the active running of the business . That is one way to buy a business without money.
Step 7: Look for other sources of funds
To buy a business with no money, you may seek fund from some external sources. There are times the owner may not be offering you 100 % seller-financing , you will need some extra funding to make up.
Here is how to get such funds:
How To Raise Funds For Business
i. Gifts from family and friends
You can approach your friends and families for financial support towards the business you are about buying. You could find one or two of them that could bail you out financially.
You can look for financial partners that could provide the funds to buy the business while you do the active running of the business.
iii. Look for investors
You can search for investors who are financially capable and are willing to use their funds for business. Such can serve as sleeping partners.
iv. Convert your excess assets to cash
Personally, you could have some assets that are not in use. You can lease or sell such off and get some funds which could be used to buy the business.
v. Soft loan
You can approach friends or family to give you with soft loan. With soft loan, you don’t have to worry about interest and repayment time is quite flexible.
vi. Bank loan
You can also approach your bank for loan. However, your bank will require some collateral from you.
Step 8: Work for Equity in the company of interest
When you spot a company of interest and you want to buy with no money. You can use the “work for equity” technique. Here, you choose to work for free with your time, skill and expertise.
Step 9: Use lease to own technique
It is one way to buy a business with no money. Lease agreement allows you make use of the company’s asset for a long time .
Why You Should Buy A Business With No Money Instead Of Starting A Fresh One
An existing business is already established
When you buy an existing business, you are acquiring an established entity. All the foundational labors have already being done for you. There is a system in place already that works. All the worries and concerns of a founder is not your problem . All you need are skills and strategies for continuity and sustenance of the business.
An existing business has a good customer/ client base
Another reason you should buy a business instead of starting a new one is that an existing business already has a good customer base . All you need to do is to develop strategies to keep the customers coming back . In fact, if these customers are satisfied well- enough , they will bring more customers for you.
An existing business already has an effective branding and working business strategy
All you need to is sustain and improve all what is existing for better result
A good portion of the legal work and other stress has already being done for you
Owning a business is not as difficult as most people think. You can either start a business or buy an existing business to become a business owner. If you don’t have what it takes to start a business, you can just buy a business. I believe you have learnt from this post how to buy a business without money.
Frequently Asked Questions
What businesses can I start with money?
- Child care
- Pet service
- Free-lance writing
- Virtual assistant
- House/office cleaning
- Graphic design
- Web design
- Music teaching
- Drop shipping
- Event planning
What businesses are the fastest growing ?
- Travel & hospitality
- Real Estate
- www. Zenbusiness . com – Fastest-growing and best industries for starting a business
- www. ceotoday magazine .com – How to buy an existing business with no money
- www. smallbusinessify. com- How to take over a business with no money
- www. unconventionalacquisitions. com- How to buy a business with no money : The complete Guide